L’Occitane International S.A., an international group that manufactures and retails well-being products rich in natural and organic ingredients, today announces its unaudited quarterly update for the period ended 30 September 2022.
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Despite ongoing headwinds in certain key markets, the Group continued to build on the positive momentum achieved in FY2023 Q1.All key brands posted growth in FY2023 H1, with major contributions from Sol de Janeiro, ELEMIS and L’OCCITANE en Provence. L’OCCITANE en Provence grew 9.4 percent at reported rates and 3.4 percent at constant rates. Travel retail rebounded stronger and earlier than planned. Brick-and-mortar channels were dynamic while online channels normalised. In FY2023 Q2, despite the challenging market situation in China and the divestiture of its Russia business, L’OCCITANE en Provence maintained growth of 1.3 percent, and globally of 4.2 percent.
ELEMIS also performed well in FY2023 H1 with 21.1 percent growth at reported rates and 13.1 percent at constant rates, mainly contributed by strong growth in the US and further international rollouts. The cruise line business continued to rebound while online and offline channels remained dynamic.
Sol de Janeiro ended FY2023 H1 with EUR 94.6 million in sales, with more than 65 percent growth in local currency as compared to the same period last year. All channels posted encouraging growth, in particular chain wholesale, distribution and marketplace, thanks to well-received summer fragrances and the Bejia Flor range, as well as successful international rollouts to APAC and EMEA regions. Other brands together posted a growth of 12.7 percent at reported rates or 4.9 percent at constant rates in FY2023 H1.
In terms of regional performance, APAC grew 7.8 percent at reported rates and 1.9 percent at constant rates in FY2023 H1, followed by a slightly better performance in FY2023 Q2. Most markets posted double-digit growth, led by Hong Kong, Australia and Malaysia. Yet, growth in the region was partly offset by the mid-teens decline at constant rates in China.
The US is now the Group’s largest market in which it operates 6 brands, accounting for 25.7 percent of the overall sales in FY2023 H1. America grew 84.5 percent at reported rates or 59.8 percent at constant rates in FY2023 H1, with accelerated growth in Sol de Janeiro and ELEMIS. L’OCCITANE en Provence also posted decent growth. EMEA saw a rebound in FY2023 H1, growing 8.2 percent at constant rates, with strong contributions from travel retail and distribution sales in the region. Excluding Russia, the growth was 15.9 percent at constant rates.
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Mr. André Hoffmann, Vice-Chairman & Chief Executive Officer of L’Occitane, said, “Despite a worsening of the global macroeconomic environment in FY2023 Q2, including persistent inflation, increasing interest rates and muted consumer sentiment in some markets, it is pleasing to see a further acceleration in top-line growth, both on an actual and like-for-like basis. This has strengthened our optimism about reaching our FY2023 targets.”